North Carolina Down Payment Assistance Programs

Payments Gateway - The North Carolina Housing Finance Agency has two amazing plans for first-time Home Buyers. These systems are the deposit Assistance Program as well as the Mortgage Credit Certificate.

Should you meet the requirements for one of these programs and you buy a property between December 1, 2009 and January 1, 2009, you can even be eligible for the $8,000 tax credit merely enacted into law in the Federal Economic Stimulus Plan.

First, who is a first-time Home Buyer? There is a first-time Home Buyer someone who hasn't owned a house in the previous three years. Here is the same qualifying definition for the $8,000 tax credit.

All home owners can claim an itemized deduction. The MCC takes this a step farther. An MCC “reduces your tax liability depending on a portion of the mortgage interest which you pay.

You'll be able to claim 20% of the interest you pay as a credit on your own federal income taxes, should you qualify for the MCC. It's possible for you to save up to .

You'll be able to combine this if you do qualify for 2009. This may reduce a buyer's tax liability by $10,000.

Who Qualifies for an MCC?

Household income means the “gross income of the mortgagor and any individual expected to live in the residence who is 18 years old or older.”

The income and house price limits Durham and Chatham Counties are listed below.

MCC Income Limits 1 Man $61,500 2 Men $61,500 3 Persons $70,500 4 Individuals $70,500

MCC Sales Price Limits New Dwelling $220,000 Existing Dwelling $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their deposit and closing prices may be able to get down payment assistance - or, to put it differently, interest-free, deferred second mortgages up to $8,000. The buyer only has to pay $1,000 of their own funds and the load would pay around $8,000 of the remaining balance.

This plan has more stringent income limits than the MCC program summarized above. Like the MCC program, it can be utilized in conjunction with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment help, nonetheless, can't be applied in conjunction together with the MCC. It is an either or situation.

House price limitations that apply in Durham Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Individuals $45,650 3 Men $51,350 4 Individuals $57,050

Down Payment Assistance Sales Price Limits New Dwelling $210,000 Existing Dwelling $210,000